dcsimg How to turn customer insight into loyalty and growth - Ramboll Group
     
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How to turn customer insight into loyalty and growth

Metro case study: Since 2010, the Copenhagen Metro has experienced massive passenger growth, and users have also become more loyal. The positive trend can be traced back to a commercial strategy based on an extensive study of transport and travel habits in Copenhagen. 
 
Copenhagen Metro at sunset. Photo: Peter Sørensen

They are used to a lot of digging. But in the last few years, Metroselskabet - the company behind the award-winning Copenhagen subway system – has not only pulled out the giant shovels when establishing new stations. By digging deeper into passenger habits and experiences in an extensive customer analysis, the company has gained valuable insights into customer behaviour. And results are beginning to show.

In the past five years, the metro has experienced major growth in passengers from 50 million in 2009 to 56 million in 2014. Although impressive, passenger growth is not the only important success factor. 94% of customers claim to be satisfied or very satisfied with the metro. During 2010-14, the share of passengers who would recommend the metro to others has increased from 44% to 52%, and the Net Promoter Score has jumped from 21 to 30.

In other words, the customers have become more loyal.

Far from a one hit wonder

The results of Copenhagen Metro’s systematic approach to Customer Experience Management is no coincidental one hit wonder. For the fifth consecutive year, CEMindex highlights the commercial potential of working systematically with Customer Experience Management. 

In cooperation with Copenhagen Business School, the research project documents that a 10% increase in CEM contributes to a 10% increase in differentiation and a 5% increase in financial results. Put differently, customer focus is bottom line business.

READ Research Paper: Customer experience management and business performance

Stig Jørgensen, Director for Market Development at Ramboll Management Consulting, explains the growing role of CEM in a megatrend that has seen businesses step even closer to their customers: 

- Customer Experience management is a continuous process that involves always remaining in step with your customers and always remaining attentive to their needs, preferences and satisfaction. If you want your company to grow that growth must be based on customers as it involves creating not only loyal customers but also profitable customers

Underground shot of Copenhagen Metro. Photo: Jakob Boserup

Ambitious goal

In 2010, Metroselskabet set an ambitious goal: By 2015, it wanted a 15% increase in passengers traveling by metro.

Obviously, such an ambition cannot be executed by simply trusting your gut. This is why Metroselskabet and Ramboll Management Consulting set a customer analysis in motion to identify current and potential metro users.  

- We set the bar high and for the target to become realistic, we needed to know more about our customers’ intentions and barriers regarding the metro, so that we could make it even more attractive and get input for future profiling, says Maj Trige Andersen Commercial Development Manager, responsible for product development and new services at Metroselskabet.

For Metroselskabet to translate this ambitious goal into specific and tangible actions, Ramboll developed a Goal Model  which is based on customer needs and attitudes as driving forces behind a motivated and accelerated use of the metro.

The Goal Model reflects a solution to one of the bigger challenges in CEMindex 2014. The annual index survey covers Customer Experience Management in 600 Danish companies. And the latest results reveal that 68% believe that creating good customer experiences and high customer loyalty is a complicated task. Among the most challenging is a lack of clear goals.

A decision maker’s guide to loyalty

Through customer surveys and focus groups about needs, attitudes and behaviour, the customer analysis highlighted reliable operation, travel time and direct connections as the three most determining factors for the passengers’ decision to ride the metro. The insights made it possible to characterise passengers in different segments by using a so-called Loyalty Matrix.

To convert this passenger knowledge into concrete actions, the analysis pinpointed initiatives that could break down barriers and also have the greatest potential effect on travel activity.

- The knowledge we gained about needs, attitudes and behaviour made it possible to develop a model that could estimate the commercial effects of a number of potential efforts. The calculations effectively contributed to developing the commercial strategy. From that point, Metroselskabet could develop and carry out specific actions with a provable increase in metro journeys, Peter Jensen elaborates.

In this way, the analysis has worked as an action-oriented foundation. The recommendations included cheaper tickets, more visible metro stations and better links between car, bicycle and metro. Also, a number of partner interviews revealed a great potential in strategic partnerships.

New signs at Copenhagen Metro, Kgs. Nytorv. Photo: Metroselskabet

Metro at eye-level

On the basis of the recommendations, Metroselskabet has strengthened its overall customer experience. Among other initiatives, Metroselskabet has improved station signs and created shared traffic information for busses, trains, and subways. Also, a new Metro-app shows upcoming departures and constantly updates on any traffic disruptions. Another initiative focuses on the metro culture:

- Most people in Copenhagen probably recognise the motto ”First off, then on” and the image of feet at the platform door marking where passengers should stand to allow a smoother flow when entering and exiting the subway. Fellow passengers demonstrating proper behaviour obviously means a lot for the user experience, and we’ve tried to influence this through what behavioural psychologists call ‘nudging’. We try to affect people’s behaviour with a smile – and by giving them a choice, says Maj Trige Andersen.

In the face of this positive development, the humorous observer might suggest that the Metro is on track. Nevertheless, there is still room for improvement and the next important step will be a customer analysis that will help clarify the passengers’ entire customer journey throughout the metro. 

 

FOUR STEPS TO BETTER CUSTOMER EXPERIENCES

To better understand how to enhance your company’s customer experience, Market Manager Peter Jensen elaborates on four drivers for success.

WATCH video: Accelerating commercial potential of good customer experience

The drivers are based on the latest results from the CEM research project and Ramboll Management Consulting’s long track record helping international corporations getting closer to their customers.

1. Direction and commitment from top management

- The top management must define a vision describing which positive customer experiences to work with and where this should lead us. We must clearly illustrate the links between positive customer experiences and financial growth in specific terms.

2. Customer-centric processes

- What kind of journey is the customer on together with us? What touch points does the customer have with us? With this in mind, we maximise the efficiency of our work when creating excellent customer experiences based on precisely the touch points and experiences requested by our customers.

3. Clear goals

- We must make sure that the experiences we measure and follow up on, actually reflects the customer experience that is important to the customers. Accomplishing this often involves having vital insight into customers’ emotional experience of the company.

4. Applying customer insight systematically

- The final driver involves applying in-depth customer insight systematically, so we on the one side make sure that we measure the right parameters, while we on the other side distribute the insight to the parts of the organisation that will be using it.

 

If you want to learn more about CEMindex, the dimensions of CEM, and how to work strategically with Customer Experience Management, please visit our service page.

 

Learn more

 
Research paper: Customer experience and business performance
Get our latest research paper that examines dimensions of Customer Experience Management (CEM). The paper was nominated for a ‘Best Paper Award’.
Video: Four steps to better customer experiences
Learn the four drivers for accelerating the economic results of CEM, and see how Alm. Brand, Leo Pharma and Roskilde Festival Group work systematically with customer experiences.